Piper Sandler Lowers e.l.f. Beauty Price Target to $162, Shares Down 3%

e.l.f. Beauty (NYSE:ELF) shares fell more than 3% intra-day on Monday after Piper Sandler analysts lowered their price target for the company from $260 to $162, while maintaining an Overweight rating.

After hosting a dinner and investor meetings with key members of e.l.f.'s leadership during the Growth Frontiers Conference in Nashville, the analysts noted a slight reduction in optimism regarding the potential for a significant fiscal year 2025 beat. The analysts cited macroeconomic challenges and a weaker back-to-school season as contributing factors. Despite these concerns, they remain confident that the higher end of management's projections for both revenue and earnings is still achievable, leaving room for potential upside.

Additionally, Piper Sandler highlighted a disconnect between e.l.f.'s recent valuation trends and the company's demonstrated strength and resilience. The analysts recommend buying into the stock during this period of weakness, given the brand's continued performance and long-term potential.